Appaloosa Keeps Up Fight Against Delphi Suit

Law360, New York (August 22, 2008, 12:00 AM EDT) -- Appaloosa Management LP has asked a court to throw out claims and strike “highly inflammatory” allegations of fraud from a lawsuit brought by auto parts maker Delphi Corp. over the hedge fund's decision to pull out of a $2.55 billion investment deal that derailed Delphi's exit from Chapter 11.

Seeking a limited re-argument of the Manhattan bankruptcy court's recent ruling on its motion to dismiss the suit, Appaloosa — along with subsidiary A-D Acquisition Holdings LLC — said it deserved to be treated the same as...